-79-
and a management contract for the Embarcadero Hotel along those
lines was ultimately entered into by Hyatt Corp., Prudential, and
the other joint venture participants. Hyatt Corp. was awarded
the Embarcadero Hotel management contract without any competing
bid. Ballard, Transcr. at 136.
KWJ Corp. was an S corporation solely owned by Weaver. In
early 1971, shortly after winning the Embarcadero Hotel
management contract, Hyatt Corp. entered into a “Memorandum Of
Agreement” with KWJ Corp. (the Hyatt/KWJ agreement), whereby
Hyatt Corp. agreed to pay KWJ Corp. an annual commission
generally equal to 10 percent of Hyatt Corp.’s “net cash profits”
from the Embarcadero Hotel management contract. The Hyatt/KWJ
agreement stated: “KWJ has been the principal factor in bringing
the parties together and aiding in the negotiations” with regard
to the Embarcadero Hotel management contract. Exh. 362, at 2.
The Hyatt/KWJ agreement purportedly was authorized by Hyatt
Corp.’s executive officers under a document entitled “Certificate
of Secretary”, which bore the signature of Hugo M. Friend, Jr.
(Friend), an executive vice president, secretary, and director at
Hyatt Corp. during the period in question. Exh. 362; Friend,
Transcr. at 748-749, 753. Friend’s sister was married to Jay
Pritzker, one of A.N. Pritzker’s sons. Friend, Transcr. at 750.
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